'Data is the fuel for AI': The new foundation of insurance decision-making
Data and AI now sit at the centre of premium finance decisions. Close Brothers Premium Finance is using real-time insight to help brokers read client behaviour, assess risk faster, and protect retention-without adding friction at the point of sale.
As product director Allen Seldon explained, the difference today is speed and scale. The data has always been there; AI simply makes it usable in the moment that matters.
Real-time decisions at the point of application
"Data, essentially information, has always been central to insurance," said Seldon. "What's changed is the sheer scale of data and the use of AI, which significantly increases the speed at which it can be analysed and made available to the business."
For brokers, that now means affordability decisions at the point of application and live updates on book performance. Less waiting, fewer reruns, and clearer visibility across panels and products.
The data that moves risk up or down
Premium finance mirrors insurance in one key way: risk selection depends on accuracy. High-value signals include fraud indicators (for example, false addresses), cancellation propensity, and bad debt risk. When premiums are spread monthly, these inputs decide whether the full premium will be repaid.
The takeaway is simple: clean, connected data feeds better decisioning-and protects margin without blunt declines.
- Identity and address verification consistency
- Historic payment behaviour and missed instalments
- Policy changes, mid-term adjustments, and cancellation patterns
- Device, IP, and application anomalies tied to fraud risk
What brokers are seeing in 2026
Premiums have eased a touch, but they're still much higher than a few years ago. More customers-both individuals and small firms like sole traders-are spreading costs through monthly credit to smooth cash flow.
Default rates aren't uniform. They vary by demographic and behaviour, which is why segmentation and pre-approval are becoming core to broker strategy, especially in Commercial Lines where complex risks and seasonal revenue are common.
Here, data-driven pre-approval helps match clients to the right finance options before renewal or remarketing. Close Brothers Premium Finance's Focus 360 dashboard gives brokers a single view to track default rates throughout the year and benchmark against peers in similar segments-making it easier to act early and strengthen client relationships.
AI's role: cleaner data in, faster decisions out
"It remains incredibly important to keep accurate data across the business," Seldon noted. AI speeds the work: filtering information, analysing it, and supporting decisions in near real time.
This is already trimming the time it takes to complete customer due diligence and underwrite risk. Faster turnaround helps brokers win and retain clients without cutting corners on controls or compliance. For broader context, see the FCA's review of premium finance.
What brokers can do now
- Treat data hygiene as a frontline activity-standardise addresses, remove duplicates, and keep contact/payment records current.
- Use pre-approval and propensity models to prioritise clients likely to benefit from premium finance.
- Benchmark default rates by segment and product, not just at an aggregate level.
- Tighten fraud controls at the point of application with device and address checks.
- Integrate decisioning into your workflow so AMs and handlers see finance signals alongside quote and renewal data.
- Upskill teams on AI literacy to interpret and challenge model outputs, not just consume them. If you need structured training, explore AI certification for data analysis.
The bottom line
Close Brothers Premium Finance is helping brokers make cleaner, faster calls-improving retention and building products that fit real client needs. As Seldon put it, data fuels AI, and AI turns that data into decisions you can use right now.
To learn more about Close Brothers Premium Finance, visit closebrotherspf.com.
This article was created in partnership with Close Brothers.
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